Hydrogen UK has warned the UK is falling behind when it comes to securing a domestic supply chain for electrolytic hydrogen, despite being well placed to reap the rewards.
Securing a domestic supply chain could be worth up to £5bn by 2030 and £30bn by 2050, bringing it with high value jobs ranging from water treatment to the manufacture of electroylser stacks and their components. Therefore, making the most of favourable geography, centres of innovation, high potential manufacturing hubs, as well as developed complementary infrastructure and supporting low carbon sectors, Hydrogen UK set out how the UK can maximise the decarbonisation and growth potential of electrolytic hydrogen and lay the foundations for a thriving export economy.
It wants to see the UK follow similar efforts as seen in the EU to invest into the manufacture of electrolyser stacks at home, noting this will help to lower the levelised cost of hydrogen domestically and create high value jobs.
The government should consider electrolyser technologies that are less mature, with the likes of solid oxide electrolysers and other heat-assisted electrolysers holding the potential for significant efficiency improvements and diversity to electrolytic use cases, while making sure to track the development of other parts of the supply chain, before taking action and intervening where imbalances may appear.
Further recommendations include planning being streamlined, with the planning system not currently consistent for the boom in electricity generators and offtakers required for the transition to net zero; for a “well thought out and transparent roadmap” for electrolytic capacity to be funded through each allocation round on the way to delivering 10GW of hydrogen production by 2030; and for the UK to secure an appropriate funding route over the short-term to realise medium to long-term economic gains to grow the electrolytic hydrogen market.
Finally, it pointed to how hydrogen transport and storage infrastructure is required. This means government needs to build a clear pathway for its development. This should include an interim business model and a positive decision on blending in 2023.
